Reports » Malaysia

Malaysia stock market and companies daily report (January 23, 2013)

Contributed by Shares Investment

Iskandar To be Listed In June With US$300m IPO
Iskandar Waterfront Holdings (IWH) is expecting to be listed on the local bourse in June and is likely to raise more than US$300 million, according to two sources familiar with the deal. The initial public offering (IPO) will place the Johor-based master property developer in the same league as Philippines’ Ayala Corp and Japan’s Mitsubishi Estate. Those companies typically develop a region and command a number of property companies in their respective groups. The targeted market value by Iskandar Waterfront is nearly on par with Malaysia’s largest property developer UEM Land Holdings. “They are targeting a market capitalisation of some RM9 billion (US$3 billion),” one of the sources said, referring to the Iskandar Waterfront listing. According to sources, the company, whose units include locally listed developer Tebrau Teguh, has hired CIMB Investment Bank, Deutsche Bank, JPMorgan and RHB Investment Bank for the IPO.
Significance: IWH is the master developer leading the development of Danga Bay, Iskandar Waterfront, Tebrau Coast and the central business district development in Johor. The current gross development value (GDV) of its total landbank is above RM100 billion, and its IPO is bound to attract a lot interest due to the size of its GDV and IWH’s unique status.

China Automobile Parts’ Public Issue Oversubscribed By 2.36 times
Automobile chassis components manufacturer, China Automobile Parts Holdings’ public issue of 30 million new shares in Malaysia was oversubscribed by 2.36 times. The shares which were offered at 68 sen each had received 3,908 applications for 100.74 million shares. Another 60 million new shares placed out to selected investors were fully subscribed. Under its listing exercise, China Automobile Parts raised RM61.2 million from its public issue of 90 million new shares at an offer price of 68 sen per share. Of the total amount raised, RM25 million would be allocated to expanding its production centre; RM6.1 million to increase its production capacity; RM6 million for marketing and branding; RM7.2 million for listing expenses and the remaining RM16.9 million for working capital. The company’s strategy is to fortify its presence in China and expand its distribution network to the provinces of Inner Mongolia, Ningxia, Gansu and Xinjiang.
Significance: Based in Fujian Province in China, this company makes automobile chassis components like wheel-hub bolts, wheel axis, steel pins, u-bolts and torque-rod bushings for heavy vehicles. The company is scheduled to be listed on the Main Market of Bursa Malaysia Securities on 30 January, 2013.

TNB Awards RM2.5bil Contracts In Seberang Prai
Tenaga National signed three agreements for a RM2.47 billion combined cycle gas turbine (CCGT) power plant in Seberang Prai, Penang yesterday. The three agreements comprising of the engineering, procurement and construction (EPC) contract for the power plant with Samsung Engineering & Construction Malaysia, a long term service agreement (LTSA) with Siemens AG, and an operation and maintenance agreement with TNB Repair and Maintenance. “The contract with Samsung is for three years, with a total estimated value of RM1.85 billion. The LTSA with Siemens AG, meanwhile, is for 20 years with a total estimated value of RM631 million,” said president and chief executive officer Datuk Wira Azman Mohd. He further explained that the EPC contract was TNB’s first collaboration with Samsung. In addition, the 1,071MW CCGT power plant in Prai would follow strict emission limits set by the World Bank, with efficiency values of over 60 percent.
Significance: The deal is part of the RM9.7 billion investment the company planned for the next five years to build new power capacity to meet growing electricity demand. Upon completion , Malaysia will become the first country in Asia to use the Siemens SGT5 8000H, which is currently the world’s most efficient gas turbine.